Respuesta :
Answer:
Explanation:
United States is producing 200 tons of hamburgers and 60 tons of tacos.
United States' opportunity cost for producing 1 ton of hamburgers
= [tex]\frac{60}{200}[/tex]
= 0.3
United States' opportunity cost for producing 60 tons of tacos.
= [tex]\frac{200}{60}[/tex]
= 3.33
So we see that US has a lower opportunity cost in producing hamburgers, so it has a comparative advantage in producing hamburgers.
Mexico is producing 40 tons of hamburgers and 50 tons of tacos.
Mexico's opportunity cost of producing a ton of hamburgers
= [tex]\frac{50}{40}[/tex]
= 1.25
Mexico's opportunity cost of producing a ton of tacos
= [tex]\frac{40}{50}[/tex]
= 0.8
So we see that Mexico has a lower opportunity cost in producing tacos, so it has a comparative advantage in making tacos.
Since US specializes in making hamburgers, it will produce 200 tons of hamburgers and 0 tons of tacos.
Mexico specializes in making tacos, it will produce 50 tons of tacos and 0 tons of hamburgers.
Thus the answer is 192 tons of hamburgers and 112 tons of tacos.
What is the comparative advantage of hamburgers ?
The US is currently making about 200 tons of hamburgers and has 60 tons of tacos and Mexico is currently making about 40 tons of tacos. If assumed that the US and Mexico both specialize in the production of only one product. They would have a comparative advantage
As the US specializes in making hamburgers, it will make 200 tons of hamburgers. While Mexico specializes in making tacos, it will produce 50 tons.
Calculating the opportunity cost of hamburgers in the US and the of in Mexico. Thus on a combination of the costs would be Tacos= 72+40=112 tons and 192 for hamburgers.
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